In Brief
The State of Manipur revised pension benefits for government employees but created two classes based on retirement date: higher benefits for post-1996 retirees and lower for pre-1996 retirees, justifying the distinction on financial grounds. The Supreme Court held that all pensioners form a single homogeneous class entitled to equal treatment under Article 14 of the Constitution. Financial constraint cannot justify arbitrary discrimination within the same class. The Court rejected the State's cut-off date classification as lacking rational nexus to the objective of pension revision (addressing increased cost of living), which affects all pensioners equally. The appeal was allowed, entitling all pre-1996 retirees to identical revised pension benefits as post-1996 retirees, with arrears payable within three months.
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